Jakarta. The Energy and Mineral Resources Ministry will allocate Rp 22.5 trillion ($1.3 billion), or about 82% of its 2027 budget, to energy infrastructure projects ranging from rural electrification and household gas networks to major gas pipelines.

Energy Minister Bahlil Lahadalia said Wednesday that the ministry's total budget for next year had been set at Rp 27.37 trillion, leaving a relatively small portion for operational spending and other programs.

“We will implement the budget fairly from Aceh to Papua, but priority will be given proportionally to regions where development needs to be accelerated,” Bahlil said, according to the ministry's website.

The government has allocated Rp 9.32 trillion for rural electricity infrastructure at 1,250 locations, making it one of the largest components of the ministry's infrastructure spending.

Another Rp 5.21 trillion will be used to develop household gas distribution networks covering 959,232 homes.

The government will also provide Rp 949 billion to help 400,000 low-income households obtain new electricity connections.

Bahlil said around 10,068 villages across Indonesia still require improved access to electricity, highlighting the remaining challenge in extending reliable power infrastructure across the archipelago.

Major Gas Pipelines Included
The 2027 energy infrastructure budget will also finance several major natural gas pipeline projects.

The government has allocated Rp 3.95 trillion for the Dumai-Sei Mangkei natural gas pipeline, making it the largest gas pipeline allocation listed in the ministry's spending plan.

Another Rp 702.38 billion has been allocated for the Semarang-Solo-Yogyakarta gas transmission pipeline, while Rp 577.56 billion will go toward the Cirebon-Bandung transmission pipeline.

Together, the rural electrification, household gas network and pipeline projects form part of the government's effort to expand energy access while strengthening domestic energy infrastructure.

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